Loading...
•
Aug 03, 2024
Signet Q2 2025 Earnings Report
Delivered results in line with expectations, increased merchandise margin rate and average transaction value, and reiterated fiscal 2025 guidance.
Key Takeaways
Signet Jewelers reported Q2 Fiscal 2025 sales of $1.5 billion, a decrease of 7.6% compared to Q2 of FY24. Same store sales decreased by 3.4%. The company reported a diluted loss per share of $2.28, while adjusted diluted EPS was $1.25. They are increasing their cost savings target to $200 million for the year.
Sales of $1.5 billion, down 7.6% compared to Q2 of FY24.
Same store sales decreased 3.4% compared to Q2 of FY24.
Gross Margins expanded 10 basis points to 38.0% of sales.
Adjusted diluted EPS of $1.25, compared to $1.55 in Q2 of FY24.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Signet provided guidance for the third quarter and full year fiscal 2025. For the third quarter, they expect total sales of $1.345 billion to $1.380 billion and same store sales to be between -1.0% to +1.5%. For the full year, they expect total sales of $6.66 billion to $7.02 billion and same store sales to be between -4.5% to +0.5%.
Positive Outlook
- Engagements to increase by up to 5% in Fiscal 2025; however, Signet's guidance accommodates a range of engagements from (5%) to +5%. The Company's Q3 to-date engagement units are positive year on year.
- Fashion sales to be more robust based on recent trends and a modest improvement in the Digital Banners combine to offset the slower than expected engagement recovery.
- Up to $200 million in cost savings initiatives in Fiscal 2025, up from our previous expectations of $150 million to $180 million.
- Up to $1.1 billion allocated to retirement of debt, redemption of preferred shares and open-market common share repurchases in Fiscal 2025.
- The Company believes this facility will cover liquidity needs for the next 5 years at attractive terms, providing flexibility on capital priorities which include retiring the remainder of the convertible preferred shares.
Challenges Ahead
- Total sales $1.345 billion to $1.380 billion
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...